A gift card is a type of token that may be given as a gift. Some types of gift cards, such as those provided by American Express®, are for a predefined dollar amount and may be used at any participating retailer. For example, a recipient may use such a gift card to purchase any goods or services up to the dollar amount from any participating retailer. Other types of gift cards may be specific to particular retailers. For example, a gift card for Banana Republic® entitles the recipient to purchase only items from Banana Republic® up to the dollar amount of the gift card. Still other types of gift cards entitle a recipient to receive a fixed amount of goods and services.
Different jurisdictions apply different amounts of tax to purchases made with tokens, such as gift cards. This cost of this tax is borne by the recipient of the token, and is typically paid when the token is redeemed.